All Forum Posts by: Kathy Utiss

A lot of people will tell you to attempt to do business locally. However, most banks and or lenders have so many hoops to jump thru. Even though you have a primary residence , and a rental does the debt to income or built in equity cover help the deal make sense? Credit score is a big factor as well. There are some companies offering jv equity partnerships that might help. However, my experience was not what was expected. You will have some chime in I'm sure. But the more info given the more precise your answers will be. 

Curious if anyone would be interested in doing this. 

If his assistance doesn't work lmk. I have an associate into setting up wills, trusts, annuities. 

You mentioned using a treasury to offset your interest. Couldn't you purchase a zero coupon treasury to insure your loan against default? 

Ie: zero coupon at discount matures and pays off principal? 

You can be a success without a degree. Real estate isn't all about being a RE agent. I'd suggest all the education you can get in the arena. Besides an agent I'd consider an underwriter, paralegal, or attorney. Out of the three paralegal will be the easiest to obtain. Even if you don't work for someone utilizing the skill it's good to know how to protect yourself legally. It's a scam or be scammed world in this line of work. Many are wolves in sheep clothing.

190,000/$250,000=76% LTV

.05% CLOSING COSTS

.05% REHAB/REPAIR TOTAL IS $209,000 LTV IS 86%

+ $30,000 TO SELLER Your Purchase Price ends up being $239,000

If you have any holding costs in the meantime that leaves $10,000

Now if you couldn't take this on yourself and had to forward to an investor he'd have to eat the $30,000 and sell it to you at $150,000. As $250,000 x .75=$187,500 The payment sounds nice on a 15 yr note. A lease option tenant leaves the owner on the hook if his debt isn't paid off.

Yes you may make a couple of bucks on the down payment from a lease option tenant but if something happens he's still holding the bag not you. I know some people do sandwich leases there are some pros. However, some back out after making such a deal. Then leave the owner on the hook. Then they'll do anything just to get out from underneath it the bank will accept. But he's trying to take a buyer for a ride in my opinion.

I'd try to find out what is due on the actual note before I pay a dime. Also, make sure owner isn't involved in a bankruptcy either. A s then the property will have to be bought thru his bk case/estate. Wish I had a better idea on good advice ;) 

I'm attempting to do new build on a fourplex. FHA has a decent program probably at least a 620 score needed. Fourplex I'm trying to build is a million dollars. Each will be five bedroom three bath. I've been told that it would be at least 3.5% down which is $35 000. Probably at least 10,000 for closing costs and whatever other fees they tack on. And 3 months of reserves. My biggest question was if you're allowed to use prospective tenants first and last month and deposits to do such. I got told this is possible that I think I would probably just stick to the deposits. Going FHA you would have to live in one of the four units. But it's one way to get a free house by having other people pay for your housing. If you have a score of 685 or more I got a friend who can write the note at 6% for 80% amortized over 30 10-year interest only balloon. You don't have to live in any of the units.

There is actually a shortage of homes in Nevada. We've been working with a couple of cities to do new build out there. There are a lot of entities wherein their employees need housing as well. Some of the companies offer a stipend to employees for housing. But the housing for employees is poor. Financing for such projects gets outrageous. Do do do and wait wait wait. One appraiser doing appraisals in a 5 or 6 hour journey.  People volunteer to invest then spend their money foolishly. Who does such things. We're talking 5/3 making $250 a night! With an endless supply to be built! 

There are actually two NACA groups. One is ran by supposedly consumer advocate attorney's that operate on a contingency basis. The other is Neighborhood Assistance Corporation of America. They were or are doing a lot of homeowner modifications. Didn't know they had such a program for investors. I'd recommend going FHA on a quad if you could. You could live in one and rent the others the way you want to manage them. Being in Orlando bet you could book a lot of daily/weekly or monthly rentals. Maybe a more experienced FHA person could fill you in as to how it works better. Kinda curious about it myself. I know what I qualify for on a regular residential property. But it probably wouldn't be enough to buy a quad without using rental income. I know it mandates living in it for a year but maybe longer if you want to have someone else pay your housing expense.

Buy, Rehab, Rent, Refinance,-Brrr

FHA loans are 3.5% down so on a purchase price of $65,000($2,275) and and ARV of $170,000 puts the property at a 38% ltv. There are some FHA loans that allow rehab money as well. Not sure what type of LTV they go up to though. Even if they go up to 60% that is $102,000. Is it something you can occupy while your rehab? You may also want to talk wit a HML. Some may go up more on the LTV. Do you have the costs for repairs? Have you figured out what your holding time might be?(Checking with a realtor for days on market for rentals could help) You know how long you intend the rehab to take? Investors will want to know how long they will need to have their money tied up. I would think there would be others to chime in. Even if you don't have cash how is your credit? That always helps along with a stable job that allows more than necessities. Hope it helps some